Search found 9919 matches

by Kevin M
Sat Apr 14, 2012 2:31 pm
Forum: Personal Finance (Not Investing)
Topic: Does anyone here use a CPA for their taxes?
Replies: 58
Views: 4647

Re: Does anyone here use a CPA for their taxes?

I pay $40 for Audit Defense with TurboTax, so if I get audited they will handle everything Turbo tax will only defend 'per se' that what has been entered into the application will be computed correctly. Turbo Tax is the tax calculator. The complexity of tax law are the facts and circumstance and co...
by Kevin M
Sat Apr 14, 2012 8:01 am
Forum: Investing - Help with Personal Investments
Topic: Why Traditional IRA?
Replies: 63
Views: 3974

Re: Why Traditional IRA?

For most it seems it is better to have a Roth and get the tax deferral and future tax free withdrawals (and no requirement to withdraw at 701/2). Now how do you figure that? My guess is that many if not most will get the tax deduction now and pay no taxes on the distributions in retirement. Maybe n...
by Kevin M
Sat Apr 14, 2012 7:54 am
Forum: Investing - Help with Personal Investments
Topic: Why Traditional IRA?
Replies: 63
Views: 3974

Re: Why Traditional IRA?

Bob's not my name wrote:Are you suggesting this has been thoroughly discussed before?
Forum members come and forum members go. The wheel keeps turning round and round ...

Kevin
by Kevin M
Sat Apr 14, 2012 7:34 am
Forum: Personal Finance (Not Investing)
Topic: Prepaying taxes?
Replies: 26
Views: 2731

Re: Prepaying taxes?

Ah, property taxes. In my case, it made sense to prepay prop. taxes on my rental property, but not my home. The former reduced my income tax, but the latter did not, because of AMT. It depends on your individual situation. I just plug the numbers into TurboTax, and if it reduces my tax, I do it, and...
by Kevin M
Sat Apr 14, 2012 7:29 am
Forum: Personal Finance (Not Investing)
Topic: Prepaying taxes?
Replies: 26
Views: 2731

Re: Prepaying taxes?

Agree with Sidney that the question is too vague, but in general, I would say no. Why give the government an interest-free loan? Of course you have to "prepay" income taxes in the form of estimated tax payments or withholding unless you want to pay a penalty. I owed about $3K for 2011 (in addition t...
by Kevin M
Sat Apr 14, 2012 7:03 am
Forum: Investing - Theory, News & General
Topic: Want to be Less Risky? Add More Risk!
Replies: 153
Views: 8111

Re: Want to be Less Risky? Add More Risk!

Richard, upon more careful reading of your statements, perhaps we are not in disagreement. I am not saying that variance equals risk. I am saying that it is widely accepted that variance is a valid measure of risk, at least in the short term. What about my question about the variance of long-term ho...
by Kevin M
Sat Apr 14, 2012 6:49 am
Forum: Investing - Theory, News & General
Topic: Want to be Less Risky? Add More Risk!
Replies: 153
Views: 8111

Re: Want to be Less Risky? ADD MORE RISK!

Only professional investors who haven't been paying attention to markets or academic research over the past few decades would define risk as variance. Hogwash! I have a textbook written by Bodie (2008). As we all know Bodie is a big fan of "stocks are risky in the long run". Nevertheless, he states...
by Kevin M
Sat Apr 14, 2012 6:41 am
Forum: Investing - Theory, News & General
Topic: Want to be Less Risky? Add More Risk!
Replies: 153
Views: 8111

Re: Want to be Less Risky? Add More Risk!

Richard, I think you are conflating independent concepts in comparing variance to factor models. I am not a mathematician or statistician, but bear with me. Variance simply measures the dispersion of a variable. Factor models, regardless of the number of factors, rely on regression analysis of a var...
by Kevin M
Sat Apr 14, 2012 5:55 am
Forum: Investing - Theory, News & General
Topic: Want to be Less Risky? Add More Risk!
Replies: 153
Views: 8111

Re: Want to be Less Risky? ADD MORE RISK!

Only professional investors who haven't been paying attention to markets or academic research over the past few decades would define risk as variance. Hogwash! I have a textbook written by Bodie (2008). As we all know Bodie is a big fan of "stocks are risky in the long run". Nevertheless, he states...
by Kevin M
Sat Apr 14, 2012 5:41 am
Forum: Investing - Theory, News & General
Topic: have/would you invest in a hedge fund?
Replies: 43
Views: 2840

Re: have/would you invest in a hedge fund?

No way, no how. I would rather run a hedge fund than invest in one. No wait, I take that back--I don't think I could live with myself if I did that. :wink:

Kevin
by Kevin M
Sat Apr 14, 2012 5:37 am
Forum: Investing - Theory, News & General
Topic: Do short-term goals affect fund placement? (put bonds where)
Replies: 8
Views: 841

Re: Do short-term goals affect fund placement? (put bonds wh

It is an easier decision at current low rates. It just does not matter that much. Say you put $100K into savings and make 1% in a year, then pay 30% tax on it: $300. Big deal. I know I tend to obsess more over these kinds of things than I should. However, I keep a fair amount in taxable in CDs, and ...
by Kevin M
Sat Apr 14, 2012 5:25 am
Forum: Investing - Theory, News & General
Topic: How is "momentum" measured?
Replies: 19
Views: 1144

Re: How is "momentum" measured?

OK, so it exists. The question for most of us is, is this something I can take advantage of using something like Vanguard funds? Let's assume that your firm, Larry, can take advantage of this to the advantage of your clients; but most of us are not using your firm or anything like it. So is there so...
by Kevin M
Sat Apr 14, 2012 5:05 am
Forum: Investing - Help with Personal Investments
Topic: Target Retirement and Taxable account
Replies: 5
Views: 786

Re: Target Retirement and Taxable account

Agree with mhc if you are OK managing three funds instead of one. For now, bond rates are so low that it won't make that much difference, so you could use a TR fund in taxable now without too much negative impact. Not the most tax efficient, but you are essentially paying a price for simplicity. Of ...
by Kevin M
Sat Apr 14, 2012 4:56 am
Forum: Investing - Help with Personal Investments
Topic: IRA Targeted Retirement vs. DIY
Replies: 6
Views: 596

Re: IRA Targeted Retirement vs. DIY

Good comments by hoppy. Why are you using two TR funds? One is enough. It won't make much difference which way you go. I enjoy having multiple funds. For most people who don't want to think much about investing, I think the TR or LS funds are great. It sounds maybe like you would enjoy owning the un...
by Kevin M
Sat Apr 14, 2012 4:49 am
Forum: Investing - Help with Personal Investments
Topic: Why Traditional IRA?
Replies: 63
Views: 3974

Re: Why Traditional IRA?

Some people will get the tax deduction on contributions, and pay no taxes on withdrawals. I know people for whom this is the case. Why would anyone who is likely to be in a very low tax bracket in retirement forego a current tax deduction now if they are likely to pay little or no taxes on distribut...
by Kevin M
Sat Apr 14, 2012 4:35 am
Forum: Personal Finance (Not Investing)
Topic: Does anyone here use a CPA for their taxes?
Replies: 58
Views: 4647

Re: Does anyone here use a CPA for their taxes?

Maybe a better question would be, to ask the people who have been audited, if they wish they had used a CPA or glad they did.... If you are audited won't your CPA charge you extra? I pay $40 for Audit Defense with TurboTax, so if I get audited they will handle everything. Have had two correction no...
by Kevin M
Sat Apr 14, 2012 12:05 am
Forum: Investing - Help with Personal Investments
Topic: What fund should I choose for Roth?
Replies: 11
Views: 1630

Re: What fund should I choose for Roth?

OK, since you're still with us ... Paying down the student loan is a good investment. Guaranteed return of 4.75%, after tax unless you are getting a deduction for it, and even if so, you cannot beat that rate for a guaranteed return. Here is a link to a forum post with my thoughts on savings alterna...
by Kevin M
Fri Apr 13, 2012 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Help to choose right 401k mix
Replies: 59
Views: 5896

Re: Help to choose right 401k mix

Not sure why you would be interested in the one with the higher ER. The first one is expensive enough. Because it tracks the index much more closely. One thing I've learned in evaluating poor choices in 401k funds is that ER isn't everything. I also look at turnover, number of holdings, and how wel...
by Kevin M
Fri Apr 13, 2012 5:52 pm
Forum: Investing - Help with Personal Investments
Topic: Help to choose right 401k mix
Replies: 59
Views: 5896

Re: Help to choose right 401k mix

Kevin and retiredjg... How about ‘Eaton Vance Structured Emerging Mkts A EAEMX 1.45 / 1.45’ in Her portfolio. It seems to be tracking VEIEX pretty well. It has really high ER though. I am not sure if is high enough not to add it. I looked at the composition, they seems to hold stocks for same count...
by Kevin M
Fri Apr 13, 2012 5:30 pm
Forum: Investing - Theory, News & General
Topic: Are there skilled individual investors?
Replies: 155
Views: 13906

Re: Are there skilled individual investors?

History is written by the victors. Of course, when it comes to "skilled" investors there are two three types: - Those who outperform purely by chance. - Those who outperform due to skill. - Those who match their benchmark due to their superior understanding of market theory, history, psychology, an...
by Kevin M
Fri Apr 13, 2012 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Help to choose right 401k mix
Replies: 59
Views: 5896

Re: Help to choose right 401k mix

I still think you should include emerging markets. Otherwise you are leaving out 25% of total international; maybe in 10 years it will be 50% of international--you really don't want a piece of that? Like I said, I would open Roth IRAs (backdoor) and use them for EM; Vanguard EM is a good one. Or, ta...
by Kevin M
Fri Apr 13, 2012 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Help to choose right 401k mix
Replies: 59
Views: 5896

Re: Help to choose right 401k mix

Just doing the math in my head, I'm not sure about the ratio of S&P 500 to small-cap. According to the Wiki article on approximating total stock market, the right ratio is 86:14 when using the Russell 2000 Index. I have not run that through Instant X-Ray myself, but I assume it is correct. I think ...
by Kevin M
Fri Apr 13, 2012 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: BogleBill is ready ...
Replies: 15
Views: 2217

Re: BogleBill is ready ...

- International... 30% ... I am always hesitant with this one ... my gut says lower but I know that isn't necessarily correct and we have to start somewhere. Then go with 20%. Like I said, Vanguard uses 30% in their TR and LS funds. Also it's in the middle of their recommended range of 20%-40%. I u...
by Kevin M
Fri Apr 13, 2012 7:29 am
Forum: Investing - Help with Personal Investments
Topic: Starting Investments
Replies: 4
Views: 355

Re: Starting Investments

Haven't paid much attention to the Boglehead book list, since I've read most of them. Now that I look at it, I think it is missing the best start-up books. I consider the Boglehead "start-up" books more advanced. They are great for someone who is serious about learning about investing, but there are...
by Kevin M
Fri Apr 13, 2012 7:20 am
Forum: Investing - Help with Personal Investments
Topic: BogleBill is ready ...
Replies: 15
Views: 2217

Re: BogleBill is ready ...

I decided to give you an example of how to do the math. 80% stocks x 70% US = 56% of portfolio in US stocks 80% large cap x 56% US stocks = 45% of portfolio in large-cap US You have about 38% in his 401k, which has the decent 500 index fund, so put it all in that fund. That leaves 45-38=7% to go for...
by Kevin M
Fri Apr 13, 2012 5:59 am
Forum: Investing - Help with Personal Investments
Topic: What fund should I choose for Roth?
Replies: 11
Views: 1630

Re: What fund should I choose for Roth?

@simpleidiot, are you still with us? Since no one else has chimed in, do you still want some inputs on your other questions?

Kevin
by Kevin M
Fri Apr 13, 2012 5:42 am
Forum: Investing - Help with Personal Investments
Topic: Starting Investments
Replies: 4
Views: 355

Re: Starting Investments

Welcome to the forum. I second the recommendation to start with the wiki (see link below). It should be obvious where to start. If not, let us know, since we try to make it obvious. My top recommendation for a first, really simple investment book is "Investing Made Simple" by Mike Piper. You can get...
by Kevin M
Fri Apr 13, 2012 5:28 am
Forum: Investing - Help with Personal Investments
Topic: BogleBill is ready ...
Replies: 15
Views: 2217

Re: BogleBill is ready ...

Can't you refinance the primary? Rates are much lower than that now. You know you want 80/20 stock/bond, so that's your starting point for portfolio. 30% of stocks in international is a good default. That's what's in the Vanguard Target Retirement (TR) funds. The TR funds in wife's 401k are great. I...
by Kevin M
Fri Apr 13, 2012 4:48 am
Forum: Investing - Help with Personal Investments
Topic: Help to choose right 401k mix
Replies: 59
Views: 5896

Re: Help to choose right 401k mix

Just doing the math in my head, I'm not sure about the ratio of S&P 500 to small-cap. I would make this ratio about 4:1, since S&P 500 is about 80% of Total US last I checked. Technically you would use 80% of US in S&P 500 and 20% in an extended market fund, but small-cap and extended market perform...
by Kevin M
Thu Apr 12, 2012 9:54 pm
Forum: Investing - Theory, News & General
Topic: Are there skilled individual investors?
Replies: 155
Views: 13906

Re: Are there skilled individual investors?

History is written by the victors. Of course, when it comes to "skilled" investors there are two three types: - Those who outperform purely by chance. - Those who outperform due to skill. - Those who match their benchmark due to their superior understanding of market theory, history, psychology, an...
by Kevin M
Thu Apr 12, 2012 9:49 pm
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

We are hopefully not talking about the infamous RBD strategy again? I guess we are. I follow the RBx strategy, documented here: http://www.bogleheads.org/forum/viewtopic.php?f=10&t=94048&p=1353822#p1353822 I do not necessarily expect it to increase my long term returns, but I suspect it might--just...
by Kevin M
Thu Apr 12, 2012 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 7
Views: 952

Re: Portfolio review

YDNAL , the % you have in blue do not sum up to 100%. I understand your choice of funds but I m a bit confused by the %. I think it's great that some forum members do the math for you, but can't you do the math yourself? You know that saying about teaching to fish vs. giving a fish? Other than the ...
by Kevin M
Thu Apr 12, 2012 12:40 pm
Forum: Investing - Theory, News & General
Topic: Are there skilled individual investors?
Replies: 155
Views: 13906

Re: Are there skilled individual investors?

I retired early at 55 after starting work in the traditional workforce at 31, so 24 years working a real job (before that I was a hippie-type musician; poor but happy). I do not attribute it to being a skilled investor (in terms of picking stocks or market timing). It was a combination of fortunate ...
by Kevin M
Thu Apr 12, 2012 12:32 pm
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

Value Averaging strikes me too much as market timing, which I've decided I don't have the time/knowledge/skill to do. I'm just annoyed that everything I'm invested in seems to have a correlation close to 1. Something is supposed to zag, dammit! For the record, I put in money as I receive it. Alread...
by Kevin M
Thu Apr 12, 2012 12:27 pm
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

Maybe a topic for another thread (and there have been some), but I thought ` True ' Value Averaging involved sometimes leaving cash uninvested, and sometimes borrowing on margin. Definitely the former, but not the latter--at least I don't recall Edleson presenting that in his book (which I have ups...
by Kevin M
Thu Apr 12, 2012 12:12 pm
Forum: Investing - Theory, News & General
Topic: Should have filed tax return earlier
Replies: 5
Views: 1136

Re: Should have filed tax return earlier

Thanks for sharing Muchtolearn. One reason I pay the $40 or whatever for Audit Defense is that they make all those phone calls for me; the other is that my return is a bit long and complex (about 25 pages), and although TT tells me my audit risk is low, I would prefer not to have to deal directly wi...
by Kevin M
Thu Apr 12, 2012 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Can a person have no risk tolerance?
Replies: 63
Views: 3475

Re: Can a person have no risk tolerance?

shrink at your service... :) the stock market's down, what, 3% from its recent highs? If that really causes you sleepless nights then you have too much in stocks. Try 20% instead of 33%. And stop reading the financial news Careful ... I got jumped on for mentioning the part about reducing equity ex...
by Kevin M
Thu Apr 12, 2012 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Can a person have no risk tolerance?
Replies: 63
Views: 3475

Re: Can a person have no risk tolerance?

I found Warren Buffet's recent thoughts on equities vs bonds to be compelling: http://finance.fortune.cnn.com/2012/02/09/warren-buffett-berkshire-shareholder-letter/ Cb Always enjoy reading Buffett. Although not nearly as compelling or witty, I covered basically the same topic (as the first half of...
by Kevin M
Thu Apr 12, 2012 11:42 am
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

I was happy as a pig in '08-'09 because I was buying cheap shares. The market has regained so much, that I'm actually more worried now. I feel like I can't buy anything at a good price at the moment. I've been shoveling my contributions into International, but I'm now overweight in that area. It's ...
by Kevin M
Thu Apr 12, 2012 11:32 am
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 7
Views: 952

Re: Portfolio review

Thanks Kevin. ex-US and Total Intl are in separate IRAs. I was moving towards Total Intl since I have losses in ex-US and want to harvest the losses. You're welcome! Taxable (Vanguard) VTSAX (Vanguard Total Stock Mkt Idx Adm) (0.07) 15% VEU (Vanguard FTSE All-World ex-US ETF) 5% [losses] Roth IRA (...
by Kevin M
Thu Apr 12, 2012 11:09 am
Forum: Investing - Theory, News & General
Topic: Should have filed tax return earlier
Replies: 5
Views: 1136

Re: Should have filed tax return earlier

Thanks Sidney. Since I didn't receive a letter, and nothing happened outside the tax system, I'm not sure this applies to me. Also, when you sign up for Audit Defense, they don't want you to talk to the IRS about your return. I think what I may do is contact Audit Defense proactively, and just let t...
by Kevin M
Wed Apr 11, 2012 10:21 pm
Forum: Local Chapters and Bogleheads Community
Topic: Chaz Watch
Replies: 80
Views: 11739

Re: Chaz Watch

Chaz's signature is longer than his posts. :idea:
by Kevin M
Wed Apr 11, 2012 10:13 pm
Forum: Investing - Theory, News & General
Topic: Should have filed tax return earlier
Replies: 5
Views: 1136

Should have filed tax return earlier

Waited until yesterday to file my tax returns electronically using TurboTax. Federal return got rejected. Reason: apparently someone else used my social security number to declare a dependent on their return. Maybe if I had filed earlier I would have beat them to it. :oops: Since I can't file electr...
by Kevin M
Wed Apr 11, 2012 10:09 pm
Forum: Investing - Help with Personal Investments
Topic: Portfolio review
Replies: 7
Views: 952

Re: Portfolio review

No reason to use FTSE All-World ex-US (ETF or mutual fund) when you have access to Total Intl Stock Index. Using a target retirement fund would be OK if no other good choices, but you have other good choices, so why complicate things with an all-in-one fund? You have to break out the AA within the f...
by Kevin M
Wed Apr 11, 2012 12:04 pm
Forum: Investing - Help with Personal Investments
Topic: Excess Roth Contribution
Replies: 6
Views: 763

Re: Excess Roth Contribution

Glad you got it straightened out.

Kevin
by Kevin M
Wed Apr 11, 2012 12:01 pm
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

`If you are freaking out about a 4% to 5% drop in a week or two, then your stock allocation is too high.' I don't agree with this. This solution is not to go more conservative. The solution is to just get used to market gyrations, and to learn to tune out the noise. I don't think the OP is risk ave...
by Kevin M
Wed Apr 11, 2012 3:03 am
Forum: Investing - Help with Personal Investments
Topic: What fund should I choose for Roth?
Replies: 11
Views: 1630

Re: What fund should I choose for Roth?

If you are only investing in IRAs, then I recommend Vanguard target retirement or LifeStrategy funds. They provide a low-cost, fully diversified portfolio in a single fund. Stock portion is 70% US, 30% international, and you pick the fund that gives you the stock/bond ratio you want. I have written ...
by Kevin M
Wed Apr 11, 2012 2:54 am
Forum: Investing - Help with Personal Investments
Topic: Can a person have no risk tolerance?
Replies: 63
Views: 3475

Re: Can a person have no risk tolerance?

Some don't like it, but I find Swedroe's ability, willingness and need to take risk framework very useful. It sounds to me that you have little need to take risk to meet your goals. It sounds like you have very low willingness to take risk (the emotional component). You may have more ability to take...
by Kevin M
Wed Apr 11, 2012 2:39 am
Forum: Investing - Theory, News & General
Topic: How do you approach a down market psychologically?
Replies: 101
Views: 6143

Re: How do you approach a down market psychologically?

Look at a 10 year price or growth chart of a broad-based fund like Vanguard Total Stock Market (VTSMX). Do you know how to do that? If not, I will tell you how (or someone else will). Do you really see anything significant about the last few days, or whatever it is? Then look at 5 years, then 1 year...